Loading judgment…
Facts
The assessee, Nek Karya Sewa Samiti, applied for regular registration under Section 12AB. The CIT(Exemption) rejected the application due to non-submission of donation details, leading to the cancellation of its provisional registration.
Held
The Tribunal held that the order of the CIT(Exemption) violated principles of natural justice. The assessee undertook to submit all requisite donation details, and thus the matter was remanded back to the CIT(Exemption) for a fresh decision.
Key Issues
Whether the CIT(Exemption) order rejecting the registration application without providing sufficient opportunity was valid? Whether the case should be remanded for fresh consideration after submission of missing documents?
Sections Cited
253, 1961, 12AB, 10AB, 10AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश / O R D E R
Per Paresh M Joshi, J.M.:
This is an appeal filed by the assessee Under Section 253 of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’ for sake of brevity) before this Tribunal. The assessee is aggrieved by the order bearing Number ITBA/EXM/F/EXM45/2023- 24/1061948928(1)dated 04.03.2024 of the Ld. CIT(Exemption),
Nek Karya Sewa Samiti Bhopal, M.P. which is hereinafter referred to as the “impugned order”.
Registry informed that there is delay of 4 days in filing the appeal. Delay of 4 days condoned for which assessee has shown sufficient cause. Appeal admitted and taken up for hearing.
FACTUAL MATRIX 2.1 The appellant is a Society, registered under the Madhya Pradesh Societies Registration Act, 1973 vide certificate of Regn.
No. 03/27/03/15206/12 Dated 09/05/2012 and has provisionally registered under Section 12A having provisional Registration No. AAEAN1998BE20211 from AY-2022-23 to AY 2024-25 through order of CIT exemption dated 07/04/2022.
2.2 The objective of the Society is to make available free of cost food packet to poor or lower-class students, Schools, hospital and various distribution centre in city and to spread awareness towards Medicine and Health in general. Society also provides Medical Facility for CT-scan and MRI at free of cost or concessional rate.
Nek Karya Sewa Samiti 2.3 The assessee applied for regular registration under clause (iii) of sub-section C of section 12AB(1) of the act, as per the new provision of Income Tax Act, 1961 in Form 10AB on 30 September 2023 via Ack No. 373639010300923.
2.4 Consequently, opportunity letters were issued and various documents/details were called for; to process the said application on 04 December 2023 but due to Asses portal issues, assessee could not access to the same on time. On 16 January 2024 assessee submitted the response along with the documents.
2.5 On 30 December 2023 & 19 February 2024 assessee again received notices but no further documents/details were called for. However, assessee again responded with all the documents which were earlier submitted on 16 January 2024.
2.6 Assessee submitted reply it also requested to allow more time to submit the donation details but no response was given and order for rejection was issued.
2.7 On 04 March 2024 assessee received the rejection order in Form 10AD stating that -
Nek Karya Sewa Samiti ITA No. 428/Ind/2024
- Assessee has not submitted the donation details and resubmitted the previous documents only.
- Assessee has submitted incomplete reply and requested to allow more time to submit the donation details.
2.8 The application of the assessee in Form 10AB for grant of registration u/s 12AB is rejected and the provisional registration/approval u/s 12AB in Form 10 AC vide URN No. AAEAN1998BE20211 dated 07.04.2022 is also cancelled saying that non-compliance of required documents/information.
2.9 That the aforesaid order bears Number ITBA/EXM/F/EXM45/2023-24/1061948928(1) and same is dated 04.03.2024 (the impugned order) supra.
2.10 That the assessee being aggrieved by the impugned order has preferred an appeal before this Tribunal and has raised following grounds of appeal in Form No.36 which are as under:-
Nek Karya Sewa Samiti ITA No. 428/Ind/2024
"1. The details of donation received could not be submitted. However, due to oversight, this compliance was missed for which we deeply regret. The audit report was attached from where the receipts can be seen. All donations were received through banking channel only. The society has now compiled the details and are ready for submission."
Record of Hearing 3.1 The hearing in the matter took place before us on 25.03.2025, when the Ld. AR for and on the behalf of the assessee interalia contended that "Impugned Order" of Ld. CIT(E) is in violation of principles of natural justice and is therefore bad in law, illegal and not proper. It deserves to be set aside by this Tribunal in exercise of its appellate jurisdiction.
The Ld. AR fairly conceded that no doubt donation details were sought by Ld. CIT(E) at the material time but since the same were not available at the material time it could not be supplied however the same are available now and if this Tribunal is pleased to set aside the impugned order then in the proposed remand proceedings before CIT(E) they would submit the same without any demur. Per contra Ld. DR for and on behalf of the Revenue did not strongly oppose the contention of the Ld. AR and Page 5 of 7
Nek Karya Sewa Samiti finally left it to this Tribunal to take appropriate call on this issue in accordance with law. In rejoinder Ld. AR submitted that they indeed regret non compliance on part of the assessee but asserted that in Audit Report donation amount could be seen as having been received through normal banking channels. The assessee has now compiled the details and that they are ready to submit the same.
Observations,findings & conclusions.
4.1 We now have to decide the legality, validity and proprietary of the “Impugned Order” basis records of the case and contentions canvassed before us.
4.2 We have minutely perused records of the case and have heard the rival submissions.
4.3 We are of the considered opinion that since Ld. AR has under taken before us that the assessee would file all requisite details of donation as requisitioned by CIT (E) it would be just fair and convenient and in the interest of ends of justice that impugned order be set aside and matter be remanded back to file of CIT(E) to pass a fresh order on denovo basis after assessee has Page 6 of 7
Nek Karya Sewa Samiti submitted all details as sought. Hence we set aside the “impugned order” as and by way of Remand on denovo basis.
Order 5.1 In the premises “impugned order” is set aside as and by way of remand on denovo basis.
5.2 Appeal is allowed for statistical purpose.
Order pronounced in open court on 25.03.2025.